K2 Gold (TSX-V: KTO)(OTC: KTGDF) VPE Jodie Gibson on New Copper Discovery at Mojave Gold Project
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Vice President of Exploration for K2 Gold, Mr. Jodie Gibson. Jodie, it's been a bit, how are you?
Jodie Gibson: I'm doing great, sir. Just here doing the quarantine thing in Vancouver and looking over lots of new data coming in.
Gerardo Del Real: Listen, the combination of the quarantine thing as you called it, has allowed for K2 to be able to take a little bit more time and process a lot of data. And it's led to two pretty significant discoveries of late, I mean, in the past week. The first bit of news came on May the 13th, where K2 discovered a significant new Gold zone at the Mojave Gold Project. I want to start there, but before we do, I have to mention this morning's news where K2 discovered a significant sediment hosted copper zone. That looks to be extremely exciting especially in the context of $4.60/lb copper and $1,870 gold right now. Let's start with the Gold zone, tell me a bit about that and tell me a bit about what that process that led up to this discovery looked like.
Jodie Gibson: Yeah, well, the gold release, so that was focused on our Eastern target area and that includes the Dragonfly, Newmont targets where we had the drilling that we did in the fall, a pile of historic sampling and we had a pretty good idea of what was going on with the geology. But given we had time, we had numbers, we decided to just good old-fashioned boots on the ground, get out there, map it, prospect it, put things in our context and nomenclature. And we found that basically the entire Eastern side is mineralization as related to a series of north-northwest trending faults, strong silicification and the jasperoid development with strong alteration along with the alteration veering away from that and within the right host rocks, and so it was understanding what was causing our mineralization we knew about, and then how to extrapolate and find more from that.
So, the highlights from that were the discovery of a sub-parallel structure from our Dragonfly zone that had never been prospected before. We're getting samples up to 14 and a half grams and are actively following up on that right now. Other highlights are from our Newmont, we knew the Newmont structure had over 800 meters strike length, but was still wide open to the North. So, we continued the map and followed that out, we added another 300 meters, we're up over 1.1 kilometers on the strike extent of that mineralized structure. And then of course our Flores zone on the Eastern side, individual samples up to 24 grams, it's wide open, just needs a bit more follow up geology. So, it's quite exciting over there, those are all gold targets.
Gerardo Del Real: John Robins, who obviously has been serially successful throughout his career in this space called the Mojave Gold Project, one of the best early stage gold camps he'd ever seen. Obviously by your description of the multiple targets and the high-grade oxide nature of the resource that you're chasing and frankly, what's going to end up being multiple deposits, I believe, right? That would be enough to get anyone excited what the market cap of approximately, I think it's at $22 million the last time I checked, and a good chunk of that backed up by cash. But then you had the news this morning that you've also discovered this very significant sediment hosted copper zone, and we're talking samples of up to 14.2% copper and a strike length of 1.8 kilometers. As you mentioned off air, it's still open to the North and Northwest, walk me through this discovery because again, in the context of $4.60 a pound of copper and $1,870 gold, this is extremely exciting for a company with a market cap of $22 million.
Jodie Gibson: Yeah, well, the Stega’s on our Western side of our property and initially, we were focused on the Eastern side because that's where we knew we had gold, we knew it had been drilled with ore grade type intercepts. That was kind of our boots on the ground to follow up. But we also knew we had a pile of samplings and a mishmash of data on the Western side, and that included the Stega and the Copper zone.
And so this winter was kind of our first opportunity to really dig into it, we did a bit of work last year on the Gold zone, but decided to tackle the Copper zone this year and really get an understanding what the mineralization was associated with. And yeah, I mean, it's a series of high angle structures crowding across the sediments, widespread alteration, significant copper development, be it oxides and carbonates. But we're also getting actual sulfide mineralization at surface locally and very high grades, long strike extent. So, it's early days on the target, we believe that it's a part of a broader polymetallic system and you get evidence of that within the broader district at five kilometers to the North at Cerro Gordo Mine, Morning Star, these were all polymetallic carbonate replacement skarns and high-angled structures mineralization. So, it's part of a broader system, I think we're just starting to scratch the surface on it. No pun intended.
Gerardo Del Real: The picture that's emerging to me anyway, is a district scale gold play, a potentially district scale copper play. As you just mentioned, you think this is part of a bigger system that could include silver and lead, if I'm not mistaken, right? You have the Pete Smith Mine, which is nearby, an old abandoned mine. Is that right?
Jodie Gibson: Yeah, well, that's a unique part about Stega and it's something I don't think I've ever quite seen geologically before, to be honest, but you have what we call the silver-lead zone, and you have a series of rock samples, series of historic workings that are all silver base metal-rich. So, primarily silver-lead, but you're getting zinc in it as well, extensive propylitic alteration, and you hit a fault zone, go across that, and then you're in this copper zone, which we've discussed today is full of high-grade copper. You know, it's got a bit of silver, a bit of gold, but it's copper dominant.
And then to the East side, though, you have yet another fault, you go across and you're into what we call the Gold Zone, and we'll have some more results up coming from the Gold Zone. But we did work on that last year and had 13 meters of over five grams in chip samples and it's gold dominant. So, it's a zone structurally controlled system, I'd say is, the best we can say at this stage, but what I can tell you is there's a lot of metal over a big area out there, and there's lots more to find.
Gerardo Del Real: Well, it sounds like an exciting rest of the year, everyone is excited to get the drills back on the property and get the drills turning. I know the last drilling program encountered a few issues and a few of the holes getting to target depth, and I think, the market misread that for they missed when in reality, it's like, "No, you actually never got to the target". Can you speak to that a bit because where you did hit the target, the numbers were phenomenal, right?
Jodie Gibson: Yeah, well, that was primarily from our second set up on our Dragonfly zone, and what had happened there was we were drilling on the edge of the mineralized zone, and you're within silt sediments, you have lots of cross faults and this is strongly fractured rocks. So, we were drilling until the alteration halo. I mean, if you go back and you look at the numbers, we hit anomalous gold mineralization alteration that was vectoring down those holes.
Gerardo Del Real: Right.
Jodie Gibson: But just with the method of drilling we were using, it didn't have enough umph to push through the fracturing and the broken rock to get to the good stuff. But at the end of the day, we can use that information, we can use that as a vector and we know exactly where to go back to, and punch across it into a better mineralization and future programs.
Gerardo Del Real: That's the opportunity, right? I mentioned the $22 million market cap, you have a 52 week high of 96 cents. The stock, even after today's announcement and in a very favorable 15% response, still trades at 36 cents, and that's the opportunity. Jodie, thank you so much for coming on, anything else that you'd like to add to that?
Jodie Gibson: I would say, just keep your eye out on the news, as I mentioned, we've got more results to come out from the Stega Gold zone. We've also done soil sampling across the property, so, we'll have that. We're in the process of doing more rock sampling and ionic leach sampling, and so, that is a similar methodology to MMI. So, that's really good for buried targets, we're going to use that on our Owens target, which is on the Western side, which is a buried porphyry target initially developed by BHP. We're also going to do some of that in the Upland Valley. Then most recently we just completed a VTEM survey with Geotech. So, that data is hot off the press and currently getting processed and is going to really help us tie the story together with resistivity and chargeability plus updated magnetics.
Gerardo Del Real: Amazing how much work goes into the so-called quiet period, right?
Jodie Gibson: Exactly.
Gerardo Del Real: Absolutely! Jodie, I'll let you get back to it. It sounds like you got a lot to get to, I'm looking forward to future news and again, thank you for your time and that thorough update. I appreciate it.
Jodie Gibson: No problem. Thank you.
Gerardo Del Real: All right. Chat soon.
Jodie Gibson: Sounds good.